Font Size

- Aa +

Thu 6 Dec 2007 10:37 AM

Font Size

- Aa +

Orascom sells $622mn of Hutchison shares

Hong Kong's Hutchison Whampoa raise slice of subsidiary Hutchison Telecom to almost 60%.

Hutchison Whampoa, the Hong Kong conglomerate controlled by billionaire Li Ka-shing, has agreed to raise its slice of subsidiary Hutchison Telecom by buying shares from emerging markets operator Orascom for HK$4.85 billion ($622.1 million).

Hutchison Whampoa's stake in its telecoms subsidiary, which this year sold off its Indian mobile business, will increase to 59.33% from 50.11%, Whampoa said in a statement on Wednesday.

Under the agreement with Orascom, the conglomerate will pick up stock at HK$11.00 apiece, a 0.54% discount to its closing price as of December 4.

Analysts say it's a matter of time before Egypt's Orascom sells out of Hutchison Telecom, which exited India's booming market but still operates in emerging markets from Israel to Vietnam.

The statement did not mention how much of Hutchison Telecom Orasom will hold after the transaction, due to be completed January 2008. The Egyptian firm held about 16% of Hutchison Telecom as of October. (Reuters)